Many years ago, a very serious designer who would later serve as chair of the Harvard GSD architecture department (who at the time was president of an internationally renowned, Atlanta-based firm) stood in the AIA Board room in Washington, D.C., and announced, to the surprise of many of the corporate architects in attendance, that making money as an architect is easy. The hard part, he said, is maintaining design integrity.
Making money is easy? Who could believe such a statement? There were a number of people in the room that day, though, who nodded in agreement. As businesspeople, they were well aware of the money-making potential of meeting client demands with the talent pool at hand. To their credit, they were also concerned about maintaining high standards of design aesthetics and context.
One truism is that firms that establish long-term success blend a triad of design, technical, and business talent. But shouldn’t every architect have at least an appreciation for each?
This week’s AIArchitect features a semi-annual review of how architects can expect the commercial/industrial and institutional markets to fare over the next six months. AIA Chief Economist Kermit Baker, PhD, Hon. AIA, also writes a regular feature, Work-on-the-Boards, based on primary research into firm billings and inquiries. There is also a weekly selection of Kiplinger business forecasts.
These features draw a fair number of readers. But the question is: Is this attention to business too much, too little, or just right?
What do you think?
Comments (3)
The AIA could do a lot better job of collecting financial data from Architects. I regularly purchase PSMJ's Financial Performance Survey, but because over half of the respondents are not architecture firms (mostly engineers) and there is such a small sample the results are somewhat suspect. I think the AIA could obtain more and better financial data if they would make the effort to do so.
Posted by Jim Sawyer | January 26, 2007 2:45 PM
Posted on January 26, 2007 14:45
Check out the recently released "The Business of Architecture - 2006" for an overview of recent business trends at architecture firms, including key financial indicators. This was recently made available to members at no cost. A link to this and other reports on business conditions at firms is pasted below.
http://www.aia.org/econ_reports
Posted by Kermit Baker | January 28, 2007 9:41 AM
Posted on January 28, 2007 09:41
It is not just making the money, but the collections that is the most difficult. How do you do the work and stop if you are not being paid.
I had a client accuse me of holding the project hostage.
The invoices are two years old and the project is bein built owner-builder. I had to draw the line at further on-site approvals to let them know that payment was necessary for me to continue.
Posted by Michael Silva | January 29, 2007 10:59 AM
Posted on January 29, 2007 10:59